Friday, September 30, 2011

How are business ethics different in the US than other countries?

How are business ethics different in the US than other countries?


U.S political and legal social institutions create much greater coercive and normative pressure for US companies to comply with ethical standards. There are many prescriptive rules that companies are required to follow. For example, in the United States Sarbanes-Oxley is a law that dictates ethical guidelines for US companies. In comparison, in England there is no law requiring British companies to follow prescribed ethical guidelines. Instead, companies voluntarily comply with the Cadbury Code of Best Practices. It is very important to consider U.S. Business Ethics when doing business in the United States.

Is Sarbanes-Oxley necessary?

The law imposes much stricter guidelines on companies and executives creating stronger shareholder rights. Yet Critics argue that the increased compliance costs hurt US companies and are unnecessary.  For overall investment in the United States, the law creates a safer environment for foreign investors. Therefore, it has become a necessary part of doing business in the United States.

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